Retailer Next sees profit edge lower on falling store sales

British clothing chain Next met guidance with a 0.4 per cent fall in annual profit on Thursday, hurt by falling store sales, and it forecast another decline in the 2019-2020 year.

Next, which trades from over 500 stores in Britain and Ireland, about 200 stores in 40 countries overseas and its Directory online business, said it made a pretax profit for the year to the end of January 2019 of £722.9 million (€834.6 million).

That was exactly in line with company guidance but a third straight decline. However, earnings per share (EPS) rose 4.5 per cent to 435.3 pence.

For the 2019-2020 year Next forecast full price sales to increase 1.7 per cent, with a 8.5 percent decline in retail sales more than offset by an 11 percent rise in online sales.